Texas Senate Bill SB496

Texas 2009 - 81st Regular

Caption

Relating to certain unlawful acts involving state money or property and actions by the state and private persons to prosecute those acts; providing a civil penalty.

Impact

The adoption of SB496 is set to enhance the state's ability to combat fraud by creating a clear process for enforcing accountability. Under this bill, individuals committing unlawful acts involving state funds could face civil penalties ranging from $5,000 to $15,000 per violation, alongside potential restitution for any benefits obtained. By enabling private citizens to file qui tam lawsuits—which serve as a whistleblower mechanism—the legislation invites greater public participation in the fight against fraud while adding layers of protection for those who expose wrongdoing.

Summary

Senate Bill 496 introduces a framework for addressing unlawful acts involving state money or property through the establishment of Chapter 2116 in the Government Code. This legislation focuses primarily on acts of fraud against the state, allowing for both the state and private citizens to initiate legal actions against those who present false claims for state funds or property. The bill explicitly outlines different categories of unlawful acts and the civil penalties associated with such actions, thereby fortifying mechanisms for holding violators accountable.

Contention

Though generally seen as a proactive measure, SB496 has been met with some contention regarding its application and implications. A notable point of concern revolves around the repercussions for public employees who cooperate with investigations or expose fraudulent activities within their organizations. Provisions preventing retaliation against whistleblowers are included, yet some critics question whether these protections are sufficient to encourage reporting of fraudulent behavior. Additionally, there are discussions about the potential burden on state agencies to respond to an influx of qui tam actions, which could strain resources and impede regular operations.